Demand is climbing fast, but firms are spending carefully. Demand for AI skills rose nearly 200 percent in a year, with London accounting for 80 percent of AI-related job postings and nearly two-thirds of all technology vacancies in the UK The Register, citing Accenture data. That growth sits against a cautious backdrop. Businesses took a measured approach to hiring in 2025, but there were clear demand hotspots for specialist skills including AI, data, enterprise applications and cyber security Computer Weekly's tech recruitment outlook for 2026.
For mid-market firms, that mix explains the slow pace. The talent they want is concentrated and in demand, so most start with a small squad and grow it once early projects prove their worth. Adoption is real and spreading: sectors like retail and logistics are already integrating AI to improve customer insights and streamline functions such as inventory management and supply chains GOV.UK's AI adoption research.
A first squad is usually a handful of people, not a department. Firms pair a small core of specialists in data and AI with people who understand the business, then build capability around them over time. The wider skills push helps. During London Tech Week 2025, the UK government announced a partnership to upskill 7.5 million UK workers in essential AI skills by 2030, equivalent to around 20% of the UK workforce techUK's coverage of London Tech Week 2025.
How firms bring people in is shifting too. Apprenticeships have risen from 3% of AI hires in 2020 to 19% in 2025 the GOV.UK AI Labour Market Survey 2025. That tells you mid-market employers are growing their own talent alongside experienced hires, which suits a squad that starts small and expands as projects land.
Start with the problem, not the job title. Define one or two outcomes your squad will own in the first six months, then hire for the skills those outcomes need. This keeps the team small and focused, which is exactly how most mid-market firms are approaching it.
Mix hiring routes. Bring in a specialist or two for the technical core, and use apprenticeships and upskilling to build depth, a pattern that mirrors the shift toward apprenticeships in AI hiring the GOV.UK AI Labour Market Survey 2025. Move quickly when you find the right person: the wider market shows how specialist skills are competitive, though the proportion of employers struggling to fill vacancies has declined, even as 70% of cyber firms reported at least one hard-to-fill vacancy the AI Labour Market Survey 2025. Clear scope, a fast process and a plan to grow the team will serve you better than trying to hire everyone at once.
When you are ready to make that first specialist hire, we can help you move fast. Our recruitment agent manages recruitment end to end for 8% on a successful hire, with no monthly fee and no upfront cost, through Reed.ai. Tell us the outcome you want your squad to own, and start building today.
